Today, one of the big movers and shakers in the market is Voyager Therapeutics (NASDAQ:VYGR). Currently, VYGR stock is up more than 40% on heavy volume as investors price in some bullish news.
For investors in VYGR stock, today’s move is welcome news. This is a stock that has lost more than half its value since the beginning of the year. The gene-therapy company appears to have lost favor with growth investors focusing on this space.
That said, there’s a big reason why investors are getting bullish on VYGR stock today. Let’s dive into what was announced and why this catalyst is such a big deal.
VYGR Stock Soars on Partnership with Pfizer
For Voyager, a company with a market capitalization of less than $100 million as of yesterday, a partnership deal is big news in its own right. When said partnership deal is with pharma mega-giant Pfizer (NYSE:PFE), it’s really big news.
Today, Voyager announced the company has entered into a license option agreement with Pfizer that could be valued at $630 million. This deal stipulates Pfizer can exercise options to license novel capsizes from Voyager’s RNA-driven screener technology. This would allow Pfizer to develop and commercialize a range of therapies.
As part of the deal, Voyager receives an upfront payment of $30 million. Various additional milestone payments of up to $600 million will be made, based on royalties.
For Voyager, this is a low-risk agreement with tremendous upside. The margin on this deal is impressive, and investors stand to benefit from the licensing nature of this deal. Additionally, future licensing deals or other opportunities may arise, should Pfizer be successful in its efforts.
This is a stock that’s likely to be a hot one for a while. Accordingly, VYGR stock has made it onto my watch list today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.